How fair is Fairtrade?

From bananas, coffee and tea to dried fruit and footballs, the UK spends £1.57 billion a year on Fairtrade products. After more than 20 years of campaigning, the small green and blue mark is mainstream, a badge of ethical honour recognised by 90 per cent of the country’s population.

It certainly matters to Bristolians. 92 per cent of us reported buying Fairtrade products in a recent survey and 2015 marked 10 continuous years as a Fairtrade City, one of only five cities globally to cling on to the status for more than a decade.

Essential Trading, one of Bristol’s preeminent Fairtraders, supplies 250 companies across the city with responsibly sourced products, including their own range of chocolate spreads – produced in the Dominican Republic – and teas – produced in Egypt, and business is growing – 6 per cent last year – even if nationwide sales of Fairtrade products have plateaued.

The Fishponds-based company, set up “in 1971 by a group of hippies and punks who had this idea about doing things ethically and sustainably”, has noticed a recent shift in consciousness that has translated into more demand for Fairtrade products.

“There’s a definite increase in awareness about provenance,” says digital marketing manager Kaden Fillis, identifying a correlation with the ‘shop local’ movement. “As people get more access to information they’re becoming more concerned about how their food is produced, where their food is produced, the environmental impact and also the impact on people. It used to be the case the people who produced your food were an unknown quantity in the food chain but nowadays people are becoming more aware and are demanding better.”

On the surface it looks like a success story. Consumers like it because they feel they’re contributing to better prices, decent working conditions, local sustainability and fair terms of trade for farmers in the developing world. Businesses like it – and more and more Bristol businesses are building ‘Fairtrade’ and ‘local’ into their procurement policies – because it contributes to their CSR activities, enhances reputations and attracts environmentally and socially-conscious clients and employees.

Peter Wise of Minuteman Press, winner of a 2015 Fairtrade Business Award says the accolade has not only “drawn positive comments, clients and suppliers expressing the desire to work with us”, but has also “attracted additional business, which is a bonus”.

Better still, price are coming down as the volume of Fairtrade business increases, bringing with it economies of scale. “Fairtrade’s becoming a lot more affordable as the world opens up,” agrees Kaden, noting that it’s no longer the expensive option.

It’s more mainstream than ever, but just how much of an impact are our virtuous leanings having on the producers?

Jenny Foster, Fairtrade coordinator for Bristol and the South West says the mark is “guaranteed because it’s independently audited; you know the companies have met all the minimum standards”, yet a study by SOAS University of London found that “Fairtrade certified coffee, tea and flowers do not improve lives of the very poorest rural people in Ethiopia and Uganda” with higher wages often found in comparable farms with no Fairtrade certification.

Detractors attack Fairtrade for distorting prices, exaggerating claims of poverty alleviation and environmental impact, and providing a CSR opportunity for business that is mere lip service.

Jenny agrees that there’s consumer confusion at the shelves – “many people claim to do ‘fair trade’ – two words – or direct trade but there’s no guarantee because they haven’t gone through an auditing process” – and blames this and the rise of new issues such as the refugee crisis for stagnation in sales, but argues against the non-believers. “There are always people who are cynical, but we know that it works.”

“A lot of businesspeople do want to have that impact; they don’t want to exploit farmers on the other side of the world. There is a genuine desire to do right by people.”

“We’re in direct contact with our producers,” says Kaden, confident of the positive impact that they’re having in their supply chain, particularly on farms where their own-branded products are produced.  

 “It’s fine for people to challenge the system,” Jenny adds. “But when you hear first-hand from the farmers about how transformative it’s been. You can’t really argue with that.”

Read more: Ethical tea company hopes to expand